Equinor ASA (EQNR Quick QuoteEQNR - Free Report) announced an agreement with BP plc (BP Quick QuoteBP - Free Report) to convert the South Brooklyn Marine Terminal (“SBMT”) complex in New York into a regional hub for offshore wind.

Once completed, SBMT will be one of the largest offshore wind port facilities in the United States, spreading across 73.1 acres.

Equinor and BP intend to develop SBMT as a low-emission facility. The agreement was also joined by terminal operator Sustainable South Brooklyn Marine Terminal and New York City Economic Development.

The new facility will support the growing offshore wind projects on the U.S. East Coast, which include the Empire Wind and Beacon Wind projects. The projects are expected to generate a combined 3.3 gigawatts (GW) energy. This is sufficient to power about two million households in New York. Equinor and BP will also develop an operations and maintenance hub, and staging area at SBMT, with a total investment of $200-$250 million in upgrading infrastructures.

New York has been making vigorous efforts to be at the heart of the region’s offshore wind industry. The agreement marks considerable progress in Equinor’s commitment to provide renewable power and trigger fresh economic activities in New York. Notably, the companies’ activities at SBMT are expected to support more than one thousand jobs per year in the region.

In December 2021, Equinor announced the opening of the New York offshore wind project office adjacent to SBMT. The project office will serve as the hub for Equinor and BP’s large-scale offshore wind projects in the region. Notably, the upgraded facility will help Equinor achieve its goal to install 12-16 GW of renewable capacity by 2030.

BP has developed an onshore wind energy business in the United States for more than a decade. The company operates a 1.7-GW gross portfolio across nine wind assets, which generate sufficient electricity to power 450,000 homes per year. The latest agreement will help BP achieve its target of developing 50 GW of renewable capacity by 2030.

Company Profile & Price Performance

Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.

Shares of EQNR have outperformed the industry in the past six months. The stock has gained 51.1% compared with the industry’s 44.9% growth.

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Zacks Rank & Key Picks

Equinor currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

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